The above figure illustrates a single-price unregulated monopolist. If the monopolist maximizes its profit, the consumer surplus equals ________.
A) 20,000
B) 10,000
C) 45,000
D) 40,000
Ques. 2If the exchange rate rises from 100 yen per dollar to 120 yen per dollar, the dollar has appreciated.
Indicate whether the statement is true or false
Ques. 3Explain which of the following count as money. a) a check in Ann's checkbook b) currency in Ann's bank c) currency in Ann's purse d) Ann's checking deposit
What will be an ideal response?
Ques. 4If penalties are imposed on the sellers of illegal goods or services, then the equilibrium price ________ and the equilibrium quantity ________.
A) rises; increases
B) rises; decreases
C) falls; increases
D) falls; decreases
Ques. 5Which of the following games provides the best way to model price wars?
A) a repeated duopoly game
B) a game of chicken
C) a sequential entry game in a noncontestable market
D) a sequential entry game in a contestable market
Ques. 6The ________ the Herfindahl-Hirschman Index (HHI), the ________ the industry.
A) higher; less competitive
B) lower; less competitive
C) higher; more firms in
D) lower; more profitable
Ques. 7The figure above shows the situation facing Smart Digit, Inc, a firm in monopolistic competition that produces calculators. What is the firm's economic profit per day?
A) zero
B) between 1 and 700
C) between 701 and 900
D) more than 901
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